Small tool and equipment rental from home

Homeowners doing DIY projects, small landlords, handymen and small contractors who only need a tool occasionally.

Daily, weekend and weekly rental fees, plus optional extras like delivery, consumables and refundable damage deposits.

• Basic mechanical know-how
• Organized record keeping
• Customer service and clear communication

• General liability insurance and whether it covers rented equipment and injuries; check for inland marine or equipment coverage
• Home occupation permits, HOA and lease rules, and customers visiting your address
• Damage, theft or non-returns, so use signed agreements, ID checks and deposits
• Sales tax or rental tax registration, which differs by state; check with your state revenue department
• Keeping tools maintained and safe, since injuries could lead to liability claims
• Quality commercial-grade tools and a trailer add up quickly, so budget for equipment, insurance and repairs before you start

Startup costs are typically around $5,000 to $20,000, depending on which tools you buy, whether you need a trailer, and your insurance. These are estimates. Quality commercial-grade tools add up quickly, so budget for repairs too.

Monthly revenue is typically around $400 to $2,500, depending on how many tools you own, your rental prices and how often they are booked. These are estimates that assume roughly 5 hours a week or more.

Check general liability insurance and whether it covers rented equipment and injuries, plus inland marine or equipment coverage. Also check home occupation permits, HOA and lease rules, state sales or rental tax registration, and use signed agreements, ID checks and deposits.